Programme And Module Handbook
 
Course Details in 2022/23 Session


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Module Title LH Special Topics in Finance
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 33845
Module Lead Wasim Ahmad
Level Honours Level
Credits 20
Semester Semester 2
Pre-requisites
Co-requisites
Restrictions None
Contact Hours Guided independent study-136 hours
Seminar-20 hours
Lecture-44 hours
Total: 200 hours
Exclusions
Description This module aims to develop the general intellectual abilities in understanding entrepreneurial finance with a particular focus on venture capital (VC), late stage buyouts and private equity (PE), corporate restructuring, and mergers and acquisitions. In the first half, the module starts by discussing the challenges faced by start-ups and small firms in raising external funding and the variety of funding sources available to entrepreneurial firms and their relative advantages and risks. It then covers VC in detail including the organisation of VC firms and funds, how VC firms evaluate entrepreneurial firms and make investments, returns and risks in VC and how VC firms exit their investments. The first half concludes by introducing private equity as an asset class, buyouts and their economic rationale and how PE create value in buyouts.

The objective in second half of the module is to provide an in-depth knowledge of initial public offerings and corporate restructuring activities such as mergers and acquisitions, delistings and bankruptcy, with a focus on the linkage between corporate and financial decisions and firm value. In particular, topics will be analysed within an agency cost framework, focusing on conflicts between stockholders, managers and debt-holders.
Learning Outcomes By the end of the module students should be able to:
  • Discuss the challenges in raising external finance and the importance of external finance for the success of entrepreneurial firms
  • Analyse and compare possible sources of financing for an entrepreneurial firm including various types of private equity, debt financing and non-traditional sources
  • Describe and explain various aspects of venture capital including organisation and compensation structure, evaluation and investment in entrepreneurial firms, value creation and exit strategies
  • Appraise financial statements and other firm financial information and critically evaluate these in the context of VC funding
  • Critically analyse buyout structure compared to a public company and appraise the techniques used by private equity firms to create value in buyouts
  • Demonstrate a critical knowledge and understanding of the initial public offerings and corporate restructuring approaches
  • Analyse and systematically explain how restructuring techniques can change firm value
  • Critically assess the potential candidates for particular restructurings and Analyse restructurings based on corporate valuation techniques
Assessment
Assessment Methods & Exceptions Assessment: 2 hour written unseen exam (50%) and An individual assignment of 2000 words (50%)
Reassessment: N/A
Other
Reading List